Business

New CEO for Vietnam Airlines

AGM on May 23 appoints new CEO and releases targets for 2016 and performance in first quarter.

by Hoang Huong

Vietnam Airlines has new Chairman and CEO as the outcome of the national flag carrier's annual general meeting held on May 23.

The current CEO Mr. Pham Ngoc Minh was elected as Chairman, replacing Mr. Pham Viet Thanh, and the current Deputy CEO Mr. Duong Tri Thanh will become new CEO and a member of the Board of Management. The decision is effective from June 1.

After a year of operating as a joint stock company, Vietnam Airlines has made significant progress and exceeded its targets. It has completed the transformation to a joint stock company and is in negotiations over a share purchase agreement with the Japanese aviation group ANA Holdings Inc.

The proportion to be held by ANA is expected to be 8.77 per cent of the carrier’s charter capital. Vietnam Airlines said that the deal is expected to sign off by late May this year.

Vietnam Airlines will then continue to issue additional shares to reduce the proportion of the State shareholding from 75 per cent to 65 per cent of charter capital.

In the first quarter of 2016 Vietnam Airlines carried over 4.6 million passengers, an increase of 11.6 per cent compared to the same period last year. It conduced 34,500 domestic and international flights, an increase of 9.3 per cent year-on-year.

Total consolidated revenue is estimated at over VND19 trillion ($852 million), up 13.3 per cent year-on-year and reaching 26.4 per cent of the annual plan. Consolidated pre-tax profit is expected to exceed VND1 trillion ($44.8 million), up 32.5 per cent over the same period last year.